Jumbo Mortgage LoansJumbo Mortgage Loans for Phoenix

Jumbo Mortgage Loans are for buyers who need larger mortgages, such as for more expensive homes of up to $3 million. They are called “Jumbo Loans”  because they are for amounts above the “conventional conforming”  loan limits.

The limits are set by Fannie Mae and Freddie Mac, which set the limit on the maximum value of any individual mortgage they will purchase from a lender.

When the Fannie Mae and Freddie Mac limits don’t cover the full loan amount, the loans are referred to as a Jumbo Mortgage Loans. These limits are based on median home values for typical metropolitan areas, like greater Phoenix and Maricopa county.

The average interest rates on jumbo mortgages are typically higher than for conforming mortgages. Currently, the limit on a conforming loan is $417,000 for most of the US.

Jumbo Loan Features:

  • Any loan over the conventional loan limit of $417,000 is considered a Jumbo Mortgage Loan.
  • Loan limits vary by county, and rates depend on location.
  • Financing is available for the purchase or refinance of primary, secondary and investment properties.
  • Early payoff can be made at any time without pre-payment penalties.
  • Can be used for Refinance or Purchase amounts of up to $3,000,000.
  • FHA Jumbo’s allow refinancing up to 97.75% of primary home value, or a purchase for as little as 3.5% down.
  • VA Jumbo’s allow refinancing up to 90%, or a purchase for with no money down.
  • 15, 20 and 30 year fixed rate Jumbo Mortgage  Loans are available.
  • 5/1, 7/1 or 10/1 ARM Jumbo Mortgage Loans are available.
  • Interest-only option for 30 year fixed or any of the adjustable rate options.
  • Available for single family homes and town homes.
  • Primary residence and second/vacation homes included.

Remember that you’ll generally get a better rate and lower initial payments with an ARM loan; however, if you plan to keep the home beyond the initial fixed rate period of the loan, your rate and payments could increase.